Vocabulary

• Student Loans – A form of financial aid used to help students access higher education.
• Financial Health – The state of one's personal financial situation, including the amount of savings, debts, investments, and financial literacy.
• Interest Rate – The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
• Principal – The original sum of money borrowed in a loan, or put into an investment.
• Loan Repayment – The act of paying back money previously borrowed from a lender.
• Default – Failure to repay a loan according to the terms agreed to in the promissory note.
• Credit Score – A numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual.
• Debt-to-Income Ratio (DTI) – A personal finance measure that compares an individual’s debt payment to his or her overall income.
• Financial Aid – Money that is given or lent to students to help pay for their education.
• Subsidized Loans – A type of federal student loan on which the government pays the interest while the student is in school.
• Unsubsidized Loans – Another type of federal student loan on which the government does not pay the interest, the interest accrues while the student is in school.
• Loan Forgiveness – A program where student loan debt is forgiven or canceled.
• Loan Consolidation – Combining several student loans into one bigger loan from a single lender, which is then used to pay off the balances of the other loans.
• Private Student Loans – Loans offered by private lenders like banks or credit unions, they may have terms and conditions that are different from federal loans.
• Grace Period – A set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repayment on your loan.
• Refinancing – The process of obtaining a new loan to pay off existing debts.
• Cost of Attendance (COA) – The total amount it will cost you to go to school, usually expressed as a yearly figure.
• Income-Driven Repayment Plan (IDR) – Federal student loan repayment plan that caps monthly loan payments at a percentage of borrower's discretionary income.
• Bankruptcy – A legal proceeding involving a person or business that is unable to repay outstanding debts.
• Financial Literacy – The ability to understand and use various financial skills, including personal financial management, budgeting, and investing.
• Credit Report – A detailed report of an individual's credit history.
• Asset – A resource with economic value that an individual or corporation owns or controls with the expectation that it will provide future benefit.
• Investment – An asset or item acquired with the goal of generating income or appreciation.
• Budgeting – The process of creating a plan to spend your money.
• Compound Interest – The addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
• Deferment – Postponing repayment of student loans under certain conditions.
• Forbearance – A temporary postponement or reduction of payments for a period of time because you are experiencing financial difficulty.
• Collection Agency – A company used by lenders to recover funds that are past due or accounts that are in default.
• Delinquency – Failure to make payments on time. This can lead to default.
• Federal Student Aid (FSA) – Financial help for students enrolled in eligible programs at participating schools to cover school expenses, including tuition and fees, room and board, books and supplies, and transportation.
• Fixed Interest Rate – An interest rate on a liability, such as a loan or mortgage, that remains the same either for the entire term of the loan or for part of the term.
• Variable Interest Rate – An interest rate that moves up and down based on the changes of an underlying interest rate index.
• Income – Money that an individual or business receives in exchange for providing a good or service or through investing capital.
• Expense – The cost required for something; the money spent on something.
• Net Worth – The total assets minus total outside liabilities of an individual or a company.
• Inflation – The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
• Tax – A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.
• Scholarship – A grant or payment made to support a student's education, awarded on the basis of academic or other achievement.
• Grant – A sum of money given by a government or other organization for a particular purpose.
• Work-Study – A federally and sometimes state-funded program that helps college students with financial need get part-time jobs.
• Pell Grant – A subsidy the U.S. federal government provides for students who need it to pay for college.
• Perkins Loan – A type of federal student loan, which is a school-based loan program for undergraduates and graduate students with exceptional financial need.
• PLUS Loan – Federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school.
• Tuition – The price paid for instruction from a college or university.
• Room and Board – The cost of housing and food while a student is attending college or academic institution.
• Dependent – A person who relies on another as a primary source of income.
• Independent – A student who doesn’t rely on their parents for financial support.
• FAFSA – Free Application for Federal Student Aid. A form completed by current and prospective college students in the United States to determine their eligibility for student financial aid.
• Cosigner – A person who signs an agreement to pay a loan on behalf of the borrower if he or she defaults.
• Financial Planner – A professional who helps individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes, and retirement.